RoDTEP Scheme Explained
A refund of the taxes hidden in an export's cost, paid as a scrip and clawed back if proceeds never arrive.
RoDTEP (Remission of Duties and Taxes on Exported Products) refunds exporters the taxes buried in the cost of an export product that no other mechanism gives back. It is notified by the Department of Commerce, administered by the Department of Revenue through CBIC, and set out in paras 4.54-4.59 of the Foreign Trade Policy (FTP) 2023. It applies to exports from 1 January 2021.
The logic is the principle that a country should export goods, not its taxes. GST refunds and duty drawback already return some taxes; RoDTEP is aimed at the rest.
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How the Scheme Works
- What it refunds
- Duties, taxes and levies at Central, State and local level borne on the exported product and not otherwise refunded, including prior-stage cumulative indirect taxes on goods and services used in production, and such taxes on distribution of the product.
- What it does not refund
- Duties and taxes already exempted, remitted or credited under another mechanism.
- How the rate is set
- As a percentage of FOB value, with a value cap per unit where needed, for items under notified 8-digit HS codes. Some items carry a fixed amount per unit. Rates and value caps are notified in Appendix 4R on the DGFT portal.
- How it is paid
- As a transferable duty credit, an electronic scrip (e-scrip) held in an electronic ledger maintained by CBIC.
- What the scrip pays
- Only Basic Customs Duty leviable under the First Schedule to the Customs Tariff Act, 1975.
- Budget control
- The scheme runs within a budget fixed each financial year, and rates may be recalibrated to keep claims within it.
Where the Bank Comes In
The rebate is not held up until export proceeds arrive: para 4.54(viii) says issue of the rebate does not depend on realisation at that time. But it is conditional on the proceeds being received within the period allowed under FEMA. If they are not, the rebate is treated as never having been allowed and is recovered.
So the AD bank's realisation reporting decides, after the fact, whether an exporter keeps its RoDTEP benefit. An unrealised bill that slips past the FEMA period is a foreign exchange problem and a RoDTEP recovery at the same time.
Exports That Do Not Qualify
Para 4.55 of FTP 2023 excludes, among others:
- check_circleExport of imported goods under para 2.46, and transhipment of goods originating in a third country.
- check_circleProducts subject to a minimum export price or export duty, and products restricted or prohibited for export.
- check_circleDeemed exports, and supplies by DTA units to SEZ or FTWZ units.
- check_circleProducts made in EHTP or BTP units, or in a warehouse under section 65 of the Customs Act.
- check_circleExports with no electronic documentation in ICEGATE, or from non-EDI ports, and goods used before export.
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AA, EOU and SEZ Exports: Excluded, Then Restored
The FTP text lists exports under Advance Authorisation, DFIA and Special Advance Authorisation, and exports by EOUs and SEZ units, as ineligible until the government decides otherwise. DGFT Notification 11/2025-26 dated 26 May 2025 restored RoDTEP for Advance Authorisation holders, SEZs and EOUs from 1 June 2025. Older notes that call these categories ineligible are out of date.
A Time-Bound Scheme, Extended in Short Steps
RoDTEP has been continued by notification for a few months at a time. DGFT Notification 41/2026-27 dated 30 September 2026 continues it to 31 December 2026, and DGFT rationalised the rates in February 2026 (Notification 60/2025-26). Check the DGFT portal for the position on the date you study or sit the exam.
How CCFE Tests This
Questions ask what the scrip can pay (Basic Customs Duty only), who administers the scheme, and which exports are ineligible. The usual trap is assuming deemed exports or supplies to an SEZ earn RoDTEP; both are excluded. Another is treating the rebate as payable only after realisation; it is issued earlier and clawed back if realisation fails.
FAQs
What is the RoDTEP scheme?expand_more
A scheme under FTP 2023 that refunds exporters the Central, State and local duties and taxes embedded in an export product that are not refunded under any other mechanism, paid as an electronic duty credit scrip.
Can RoDTEP scrips be used to pay GST?expand_more
No. FTP 2023 para 4.56 limits RoDTEP e-scrips to paying Basic Customs Duty under the First Schedule to the Customs Tariff Act, 1975. The scrips are transferable.
Is RoDTEP available on deemed exports?expand_more
No. Deemed exports and supplies from DTA units to SEZ or FTWZ units are on the ineligible list in para 4.55.
What happens to RoDTEP if export proceeds are not realised?expand_more
The rebate is treated as never allowed and is recovered, because it is conditional on realisation within the period permitted under FEMA.
Next steps
- Deemed Exportsarrow_forward
- Advance Authorisationarrow_forward
- Export Realisationarrow_forward
- FTP 2023arrow_forward
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